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An Ex-Expatriate

~ and what she saw

An Ex-Expatriate

Category Archives: Taxes in Italy

Tip-toeing off the Grid

18 Sunday Aug 2013

Posted by farfalle1 in Home maintenance and repair, Italian men, Photographs, San Maurizio di Monti, Taxes in Italy, Uncategorized

≈ 8 Comments

Tags

Fotovoltaic panels, Green energy in Italy, Installing fotovoltaic panels, NWG

Meet our computer wizard here in Rapallo, Andrea Canessa:

Andrea Canessa

This year when Speedy’s home-built computer finally got tired and decided not to cooperate with us any more we paid a visit to Andrea. Speedy, who makes limited demands on his computer, had the brilliant idea that Andrea could build us a machine from bits and pieces for much less than a new one would cost. And he was right! We got exactly what Speedy wants for about half what a spanking new machine would have cost.

While we were with Andrea we admired his new electric car:

IMG_0275

Cute, isn’t it?

Then Andrea started bending our ears about alternative forms of energy. We’ve been admiring our friend Leo’s extensive work of that sort at his house in Piemonte – he’s put in photovoltaic panels for electricity and solar panels for hot water – so we were pretty well up on what Andrea was speaking about. What we didn’t know, and what he soon told us, is that he has become an agent for NWG, a company that installs alternative energy systems all through Italy.

Andrea’s a man we trust, and someone who has a firm grasp of technology. To make a long story short, we decided to install a photovoltaic system for our house.  We have enough space for 10 panels which should produce about 2.5 KW of electricity when the sun is shining brightly.  Since our regular electrical service is 3 KW, and we never seem to exceed that, it seemed enough. Besides, if we need more current than the sun is giving us at any particular moment, Enel kicks in to give us the extra that we need. The project was not cheap, but there were several factors (aside from the 80% financing offered by NWG) which made it seem timely and The Right Thing To Do.

First, the Italian government has a scheme in place that will refund 50% of the cost of the project with tax credits over a 10-year period.  No, we may not live (or live here) long enough to collect it all, but the rebate is attached to the project, not to us; it can be transferred if someone else lives in our house within the time period.  The government’s incentive program is not just for photovoltaic cells. It covers other energy-saving projects as well. Why is the government being so generous?  Well, (aside from it being The Right Thing To Do) it is an effort to stimulate the economy – for the manufacturers of green energy systems and for those who install and maintain them.  This tax incentive has been increased to 65% for some systems this year.  Lots of projects are covered in whole or part – restructuring a house to make it more energy-efficient; energy-efficient windows; hot water heaters and heating systems; even  some kinds of furniture for the newly done-up house are covered.

Second, the electric company cooperates by buying from us any energy we produce which we don’t use.  We buy energy from them for .32/KWH; they buy it from us for .16/KWH, which seems fair to me.  We get a certain amount of black-hearted glee from knowing that it is our neighbors who are buying our excess, heh heh heh.  We don’t have the capability to store what we don’t use, so when the sun sets, or when it decides not shine at all, we are once again at the mercy of Enel.

This leads to an interesting case of teaching old dogs new tricks.  We’ve tried for decades to use energy during the low-cost hours, which are usually after dark.  Now we have to school ourselves to do our energy-intensive chores, such as laundry, dish-washing by machine, and oven use, during the brightest parts of the day.  Turns out it’s not so hard to adjust.

The first step of the project was to get all signed up – which in Italy of course means many, many signatures.  To our amazement, though, everything was done with great efficiency and relative speed, and a month after an acceptable engineering study and our subsequent agreement to go forward, it was time for the installation.  It was done in two steps in one day.

A very jolly crew of five men from AMS, based in Lucca, arrived shortly after 8 a.m.  The first step was to prepare for the panels.  This involved some amount of wiring inside the house and placing frames on the roof to accept the panels.

Wiring done up in the attic

Wiring done up in the attic

wires

Here’s what our indoor electric panels looked like before the installation:

electric boxes before

Here’s what they looked like at the end of the day:

electrical plant

The jolly lads from Lucca sang as they worked; it was so cheerful:

up on the roof-011

Once upon a time I would have climbed up on the roof myself to photograph progress, but I couldn’t do that this year. The photos taken from the roof itself are courtesy of the gents who did the work. The frames are not massive at all:

braces for panels

The panels were supposed to arrive at mid-day, which was about the time the electrical work was done. The men went to lunch. They came back from lunch. They tidied up some. Along about 3 p.m. they were finally able to track down the panels which had left Prato, near Florence, and mysteriously bypassed Rapallo on their way to Genova, where they now sat (a thoroughly Italian route). Our expectation was that everyone would shrug and say, ‘Well, see you tomorrow.’ Not this outfit. Two of them hopped in their panel van, drove to Genova, retrieved the panels and at 5:30 the roof was crawling with activity.

The panels arrive!

The panels arrive!

Getting the panels to the roof was not easy.

Getting the panels to the roof was not easy.

up on the roof-007

It was still hot in the late afternoon

Solving a small problem

Solving a small problem

By 7:30 the work was done and the connections had been tested successfully.

P1010468

It was time for a bit of refreshment (and a few more signatures):

The ccrew

The crew didn’t linger however; they had a two-hour drive to get back to Lucca, and another system to install the next day.

Here are a few more pictures from installation day:

They had the most appealing backpacks.

They had the most appealing backpacks.

It takes a panolply of tools to effect this sort of installation, but they kept everything neat and tidy (tools, house, everything).

tools-001

tools on parcheggio

My favorite collection of gizmos - I want a box like this!

My favorite collection of gizmos – I want a box like this!

So, everything was in place… now we had to wait for the men from Enel to come and make the connection. This also was done in two parts. There was the outside team:

Enel men

They swapped out our one-way meter, which measured only what we used, for a two-way meter for what we use AND what we sell them. (ha!) Then another technician came and checked the indoor wiring and turned it all on:

final connection

Ta-Dah! We are now using old Sol to run our day-time appliances, and it makes us feel just great. Our first reading:

Our very first 'free' energy!

Our very first ‘free’ energy!

Everything is working as it should with but one little wrinkle. NWG keeps track of all the power coming in and going out. They like to do it using the Vodaphone cell-phone system, but our hill-side coverage is not good enough to send the data. Their technician will return in a week or two to attach everything to our ADSL line to transmit the reports. Then we should be able to see daily graphs of what we are producing and what we are using. I can’t wait!!

Are we off the grid? Not by a long shot, but we’ve taken our first baby steps. Next year, who knows? Maybe solar panels for hot water. Stay tuned…

Taxing Times

05 Tuesday Jun 2012

Posted by farfalle1 in Italian bureaucracy, Taxes in Italy, Uncategorized

≈ 15 Comments

Tags

Ici, IMU, Italian taxes, IVIE

Just when we think we’re finally getting a handle on the ins-and-outs of Italian bureaucracy, Italian bureaucracy throws us a curve ball. This year it is the in the form of two new taxes.

Well, actually one re-instated tax and one new tax.

The reinstated tax used to be call l’ICI, and it was a modest tax on one’s real estate holdings in Italy. Several years ago then Prime Minister Silvio Berlusconi abolished the tax in an effort to appease voters and gain re-election, in which endeavor he succeeded. If you have been following events in Italy, you know she is in deep financial crisis, and that the new Prime Minister, Mario Monti, is a technocrat.  ” Technically (no pun intended), a technocratic government is one in which the ministers are not career politicians; in fact, in some cases they may not even be members of political parties at all. They are instead supposed to be “experts” in the fields of their respective ministries.” (For a more in-depth explanation of a technocracy, read this article by Joshua A. Tucker, writing for ‘Aljazeera,’ from which the preceding quote is taken.)  Monti has been given the unenviable task of ‘fixing’ the Italian economy, and one of his steps has been to reinstate the ICI, now known as the IMU  (Imposta Municipale Unificata).  It is pronounced exactly as below.

Photo courtesy of http://www.mdahlem.net

Figuring out what one owes for the IMU is not terribly difficult, fortunately. There is a handy-dandy website (Google IMU *your town’s name* to find it) that will tell you just what you owe, and will even print out the F24 form to use when paying it. The first payment is due June 18. The second payment is due in September if you are paying in three installments, or in December if you are paying in two. The tricky part is that part of the tax goes  to the federal government and part goes to municipalities. Rates for the later have not yet been set, and probably won’t be until August; so while you can figure out what you owe and need to pay for June, the second and third installments are still a bit of a mystery. The tax is only slightly higher than the old ICI for first homes. It is a good bit higher for second homes.

Speedy and I have no problem with this tax being stout-hearted believers in paying for civic services, even curtailed as they have become through the austerity measures.  We DO have a big problem with the second tax.

Ivy courtesy of sparkle-and-fadeaway.blogspot.it

The IVIE (Imposta sul valore degli immobili situati all’estero) is a tax on any real property owned in another country.  Designed to catch out the big fish who hide large assets overseas, this tax is sadly also netting all us little minnows.  It is not a particularly small tax either, as it is equal to 0.76% of the value of your property.  The tricky part here (aside from actually paying the damn thing) is knowing what the correct value of the overseas property is.  Fortunately in the U.S. we all have assessed values placed on our homes for tax purposes, so I suppose we could use them.  And one does get a limited amount of credit for real estate taxes paid to the locality of the property in question.

There is yet another tax which is sort of bundled in with the dreaded IVIE (dubbed ‘Poison IVIE’ by The Informer website which, by the way, I highly recommend to anyone living in Italy).  Strictly speaking it is not IVIE, but it feels like it – it is a tax on the value of any money, funds, pensions and so forth that you might have in another country.  For 2011 and 2012 it’s 0.10% of the value of said investments; in 2013 that goes up to 0.15%.  Probably by then no one will have any money left anyway, so never mind.

We understand the reasoning behind these IVIE taxes but they seem hideously unfair to an expatriate.  They are, once again, meant to catch big fish: the wealthy who have secreted their resources in foreign countries or off-shore safe havens, something rich Italians are famous for doing.  The penalties for not reporting/paying are extortionate – 10%-50% the value of the unreported assets.  Many of us “victims” of this tax wish the government huge success so as to alleviate the burden on us in the future.

It is ‘Poison IVIE’ indeed to those of us who are just trying to enjoy a quiet  expatriate life.  At some point Italy will ask just one thing too much of us; our backs will break.  We understand that we all have to do our bit to save the country, but taxing assets in our home country just isn’t right.  And don’t get any ideas, U.S.A. – don’t think you can start taxing our property here in Italy!

What Would Be the Dumbest Thing in the World to Tax?

19 Saturday May 2012

Posted by farfalle1 in Animals in Italy, Cats, Italian bureaucracy, Italian gardens, Italy, Law and order, Taxes in Italy, Uncategorized

≈ 10 Comments

Tags

Silly Taxes, Tax on Pets

Pets.  That would be ridiculous, wouldn’t it?

Real Luciano

Speedy sent me an article he came across  from Reuters (reported by Philip Pullella; edited by Andrew Osborn) about the yahoos in Rome considering a tax on  family pets.  Evidently a parliamentary commission felt that this would be an excellent way to give a little boost to the nation’s diminished coffers.  The outcry was immediate and loud; the proposal was dead by the end of the day.

It got me thinking, though.  Didn’t Italy once tax house windows, and isn’t that why there are so many trompe L’oeuil windows painted on the houses of Liguria, where people are famously tight with their cash?

Tax Evasion Luciano

Probably the idea of taxing pets is not the silliest tax proposal ever made.  A quick Google search turned up an amusing list of the ten most ridiculous taxes ever, written by Jamie Frater.  It turns out that Rome is no stranger to bizarre taxes.  The emperors Nero and Vespasian taxed urine.  Poor Romans fortunate enough to have a pot to piss in paid a tax when they emptied their pots in the common cesspool.

Go ahead, tax my dog Rover – just get rid of the tax on my hat and my beard.  I think my favorite is the one called the Crack Tax: drug dealers in Tennessee were, before the law was declared unconstitutional, supposed to pay a tax, anonymously, on the illegal substances they sold.  If they got caught dealing crystal meth, say, and didn’t have the tax stamp… well, can you imagine?  They’d have been in pretty hot water!

It did give me an idea for another tax the Roman legislators might consider:

Photo courtesy of thedragonpages.blogspot.com

The Intergluteal Cleft Tax would either raise a lot of money or send fashion careening in a new direction.

Not all strange taxes are so amusing.  The poll tax in America was a de facto method of denying voting privileges in the southern states to recently freed slaves.  It was not repealed until 1964.

Anti-Poll Tax sentiment from the U.K.

The way things are going in this election year they may have to pay people to come to the polls instead.  Especially here in Rapallo where only 16,000 of 28,000 possible voters turned out two weeks ago to elect the Mayor.

There will always be taxes, I guess.  And I guess there will always be some silly ones.  I’m just glad that, for the time being anyway, there will be no taxes in Italy for owning a pet.  Speedy suggests that instead of taxing pets perhaps the legislators could tax vegetable gardens….

A nicely laid out garden on Via Betti in Rapallo

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